Consumer Protection Law
Consumer Protection Law Questions? Ask a Lawyer Now.
Thank you for the information:
I want to know if I have a legal case against the bank an car lot.
Response: Yes, you do have a case against the bank and the car lot and you can sue both at the same time and let them fight among themselves who is ultimately responsible to you. The car lot is more culpable however because it was the one that sold you the lemon. It was the one that told you that the bank would not fund the loan. It was the car lot that told you that would make the payment on the car and failed to make the payment. On the bank's side, you kept the bank informed of your problems with the car. The bank told you not to worry about the payment and then later told you that the non-payment/repossession would appear in your credit. You relied on the bank's assurance to your detriment.
You need to make a formal demand for the car lot to make the payment as promised. Otherwise, you would file a lawsuit against the car lot for unfair and deceptive act and practice for selling you the lemon car and for promising to make the payment on your car and then failing to make the payment, which then resulted in the non-payment appearing on your credit file. As for the bank, you would ask that it remove the derogatory information from your credit file because you did what you were asked to do: not to make any payment because the car is a lemon. If the bank refuses to take the derogatory information off your credit record, then you can dispute the information with the credit reporting bureaus. Pursuant to Fair Credit Reporting Act, the credit reporting bureaus have up to 45 days to investigate your dispute and get back to you. As part of the inquiry, the credit reporting bureaus would send the information for verification to the bank. If the bank verifies the information, the derogatory information stays on your record. You would then be given an opportunity to put a statement on your file disputing the information or you may file lawsuit against the lender to force the lender to remove the derogatory information from your credit file. On the other hand, if the bank does not respond, the credit reporting bureaus would resolve the dispute in your favor by deleting the derogatory information from your credit file.
You can use the following sites to find local consumer Attorneys that can handle the case for you.